Shriram Finance shares rise 2% as report says Japan’s MUFG in final talks to invest $3.2 bn for 20% stake
Shriram Finance shares climbed about 2% after reports said Japan’s MUFG is in final talks to invest $3.2 billion for a 20% stake in the company. The news boosted investor confidence and highlighted global interest in Indian financial services firms.
Shriram Finance saw its shares rise around 2% in market trade after reports surfaced that Japan’s Mitsubishi UFJ Financial Group, commonly known as MUFG, is in advanced discussions to acquire a 20% stake in the company. The proposed investment is valued at around $3.2 billion, and if concluded, would be among the largest strategic investments in an Indian financial services firm this year.
The report suggested that the talks have reached final stages, with both sides working on detailed terms and regulatory approvals. A deal of this size would bring a major international investor into Shriram Finance, strengthening the company’s capital base and potentially driving future growth.
Investors reacted positively to the news, sending the stock higher in early trade. Market watchers said foreign investment interest in Indian financial firms reflects confidence in the long term growth potential of the sector, which includes loans, retail finance and MSME credit segments.
Shriram Finance operates in the non-banking financial company space and has a significant presence in lending to retail and commercial customers. The entry of a global bank like MUFG could bring strategic benefits, including access to international best practices and additional funding support.
Analysts noted that the stock’s move was driven by anticipation of long term growth prospects and the potential for improved financial strength if the deal is finalised. However, they also cautioned that until official confirmation and regulatory clearances are announced, the news remains subject to change.
The broader market has been watching strategic foreign investments closely, as they can signal confidence in India’s economy and financial architecture. If the MUFG transaction goes through, it could encourage similar deals in the sector.
For now, Shriram Finance’s shares have benefited from the upbeat sentiment, and investors will look for updates on the outcome of the talks and details about how the partnership might evolve.
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